Preemptive Wealth Management

It’s kind of funny that most curricula are focused on kids and young adults learning things before they need to know them.

They learn about and memorize facts and ideas that are completely unnecessary to solving actual problems they face. The idea is so that they’ll be prepared and know things in case they ever become important or useful to know in the future. It’s odd for several reasons, not least of which is that this kind of learning has almost no retention, but especially because most of the students won’t end up ever facing most of the problems even if they did retain the knowledge. (I have used Pythagorean theorem once in my entire life, and even then I didn’t remember its name or the specific formula, but had a vague idea that there was a way to find out one length of a triangle if I had the other two. Google did the rest.)

It should be taken as a given then that I am not pushing for “just in case” learning, or any kind of compulsory education period.

But if one were to agree with the standard approach of learning a bunch of things that might possibly be useful to some sliver of the class at some point in the future, you would think there might be a good bit of material on wealth management. After all, there are 12 million millionaires in the US – more than 3% of the population – which is probably higher than the percent of students who will ever need to know how to label a mitochondria. If you believe in preparatory learning, preparing to manage wealth would seem at least as logical as preparing to be a medical doctor. (There are roughly 900,000 doctors in the US, or less than 0.3% of the population).

We tend to think about wealth as only a benefit, not a problem to be dealt with. “Oh yeah, sure would be nice if my biggest challenge was learning how to manage a million bucks!” Maybe. But probably not as nice as we imagine.

What’s the opportunity cost of paying off a mortgage vs putting the money to work in the market? How liquid do you need to be? Where to keep cash since banks are only insured or $250,000 in deposits? How to deal with requests and demands from friends and family? How much to hedge against exogenous economic shocks? How to do so? How to not get taken advantage of by financial planners, lawyers, accountants, and managers of family offices and trusts? What’s the best way to handle inheritances so you give your kids a leg up but don’t cripple them and rob their ability to gain strength by solving their own problems?

Most people have trouble with financial management at the paycheck to paycheck level. More money doesn’t magically solve that. The problems just get bigger and the stakes higher.

While the idea of compulsory public schools teaching wealth management is not desirable, there might be something to the idea of individuals who desire to achieve wealth learning how to manage it a few steps ahead of time. If nothing else, the mindset alone is a form of subconscious confidence building. Investing in wealth management is a kind of bet on yourself that you will put it to use.

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State of the Union: No, Nick, Your Children Owe Nothing

Nicholas Sarwark is father to four pre-teen children. In his response to the State of the Union, delivered on behalf of the Libertarian Party (which he serves as national chair), he mentions that each of them are in debt to the tune of $70,633. “Not because we gave them credit cards to go buy cars,” he explains, but “because politicians in Washington have a credit card called the national debt.”

I don’t disagree with Nick — whom I’ve known for about 20 years — very often. On this subject, however, I do so vehemently.

No, Nick, your children don’t owe $70,633 each to the US government’s creditors. Nor do you or your wife Valerie. Nor do I. Nor does anyone reading this column who’s not a current or former president, vice-president, or member of Congress.

The only people who owe the $23 trillion “national debt” are the people who borrowed the money.

You didn’t borrow the money. They did.

You didn’t co-sign the loan. You didn’t negotiate the interest rates or other terms.

Yes, they offered your future income and your children’s future income as collateral, but that income wasn’t theirs to offer. You weren’t even consulted, except to the extent that 25% or so of you (on average) voted for one or more of the borrowers, most of whom lied to you about exercising “fiscal discipline” if elected.

And their creditors knew that, making them loan sharks by proxy. How else to describe someone who loans money on the borrowers’ promise to go beat it — principal plus interest — out of non-consenting third parties?

No one in his or her right mind believes the “national debt” will ever be paid off. It’s too big, it’s growing too fast, and it represents too large a chunk of American wealth and production.

Sooner or later, in one way or another, the US government will default. The politicians who borrow the money and the speculators who loan it to them are both engaged in a long-term game of musical chairs, hoping that the music won’t stop before they retire, die, or cash out at a profit.

When the music does stop, it’s going to get ugly for all of us. But the longer the music continues, the uglier that final note.

The good news is that after the default, the politicians’ credit card will be declined for some time to come, perhaps teaching them to live within their ample means.

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The Speech of Heroes

Almost everyone loves the idea of “speaking truth to power.”  Standing tall, talking boldly, consequences be damned – how heroic!

Yet on reflection, this Speech of Heroes takes two radically different forms.

The most common Speech of Heroes, by far, upholds Social Desirability Bias.  Example: “Everyone should be completely equal” sounds wonderful, but no actual society follows through.  Many self-styled heroic orators respond along these lines:

Equality!  We all say we believe in it.  We know it’s the right path.  Yet we are a den of hypocrites!  We pay lip service to the ideal of equality, but when inequality glares at us from every corner, we avert out eyes.  Shame on us!  Shame!  I say unto you, we must practice what we preach.  Let us live the equality we love.  Put apathy aside, my brothers and sisters.  Let us tear down all the inequalities we see.  Then let us ferret out every lingering pocket of inequality.  We must tear power from the grasp of all the corrupt leaders who casually say they oppose inequality but never do anything about it.  Together we can, should, will, and must build a totally equal society!

This kind of heroic rhetoric is standard in religious societies.  The sacred texts provide a strict blueprint for life, yet the government makes only a token effort to strictly implement the blueprint.  In response, the heroic orator sticks out his neck, decries the hypocrisy of the Powers That Be, and demands strict adherence to the holy book.  Which is music to the ears of every pious members of this society.  See the Protestant Reformation or radical Islamism for nice examples.

Notice, however, that this heroic rhetoric also dominates socialist and nationalist oratory.  Step 1: Loudly and clearly affirm a crowd-pleasing ideal.  Step 2: Decry the obvious hypocrisy of the status quo.  Step 3: Promise to strictly implement the crowd-pleasing ideal.  You’ve got socialist slogans like, “Social ownership of the means of production,” “Complete equality,” or “From each according to his abilities, to each according to his needs.”  You’ve got nationalist slogans like, “Death before dishonor,” “Germany for the Germans,” or “The safety and prosperity of all our people.”  In each case, the speaker presents himself as a hero by puritanically appealing to popular sentiment.

Once in a long while, however, we encounter a radically different form of heroic oratory.  Instead of upholding Social Desirability Bias, the hero frontally attacks it.  As in:

Equality!  You all pay lip service to it, but who really believes it?  Why should people who produce and contribute the most receive the same treatment as people who do little or nothing?  You love to denounce the hypocrites who say they believe in equality but fail to deliver it.  But I say to you: Those hypocrites keep you alive!  In a totally equal society, there’s no incentive to do anything but kvetch.  If you’re tired of hypocrisy, remember that there are two ways to end it.  You could strictly implement this monstrous ideal of equality.  Or you could proclaim the truth: Equality is a monstrous ideal!  Let’s raise the banner of meritocracy, and thank our greatest producers instead of scapegoating them.

In a religious society, the analogue would naturally be rationalistic atheism: “Forget these pathetic ‘holy’ books, fantasies written long ago by ignorant fanatics.”  In a nationalist society, the analogue would be along the lines of, “Patriotism is the last refuge of a scoundrel,” or even, “Our country is not the best in the world.  It’s not even average.  It’s below average – and things won’t improve until we admit our failures and humbly emulate the winners.”

Which form of oratory is more heroic?  Once you take Social Desirability Bias seriously, the answer is clear.  You can’t “speak truth to power” unless you speak the truth.  Implausible scenarios where Social Desirability Bias and the truth coincidentally converge, appealing to Social Desirability Bias is deeply unheroic.  Even villainous.

And truth aside, challenging your society’s fundamental values takes a lot more courage than merely decrying the violation of those values.

Yes, when you damn ruling elites for hypocrisy, those elites often retaliate.  Rhetorically, however, you’re still taking the path of low resistance.  You start with simple-minded feel-good slogans with broad appeal.  Then you point out corruption flagrant enough for anyone to see.

When you denounce your society’s fundamental values, however, you outrage elites and masses alike.  When you merely attack hypocrisy, elites have to worry about making a martyr out of you.  When you spurn Social Desirability Bias, in contrast, elites win popular support by teaching you the price of arrogance.  Who but a hero would openly challenge such a powerful pair of enemies?

Do I hold myself out as a man who embodies the Speech of Heroes?  Barely.  While I routinely challenge Social Desirability Bias, my society remains highly tolerant.  No one’s going to jail me for my words.  Indeed, since I have tenure, no one will even fire me for my words.  If I lived in a normal repressive society, I would publicly say far less than I do.  A gold-star hero would publicly express thoughts like mine… while living in Communist China or Saudi Arabia.

While I wouldn’t advise you to try this, anyone who does so is my hero.

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The Artists Who Are Challenging The Education Status Quo

On a recent weekday morning, the first floor of Tiffany Pierce’s home in Queens, New York, was abuzz with activity. Six children, ranging in age from five to 12, were making art, learning about mathematical asymmetry and digging deep into topics ranging from geography to science. Pierce runs an art-inspired, micro-learning homeschool co-op, bringing together local families who want a more personalized approach to education for their children. Together, the families hired a teacher four days a week to craft an inviting and intellectually-engaging learning environment, while Pierce volunteers her space and support.

Challenging the Status Quo

An artist with a master’s degree in teaching and prior classroom experience, Pierce was thoughtful about her son, Liam’s, education. He went to a small, private preschool nearby,Artists have historically played a crucial role in challenging dominant systems and inspiring change. but when Pierce sent Liam to a public school for kindergarten, she realized it wasn’t a good fit for him. “It was a high-performing school,” Pierce recalls, “but when I visited I saw his back turned and him just looking out the window. His affect was so low, his confidence was shot, he didn’t want to play. I knew it wasn’t just kindergarten blues. This wasn’t his fit. Then he said: ‘Mommy, will you teach me at home?’”

The timing was right, as Pierce happened to be between jobs and she and Liam’s dad thought they would give homeschooling a try. “We like the freedom of choices and options,” says Pierce. “We like to have a say in how our child operates. This person is so precious to us.” In the beginning, says Pierce, she simply replicated school at home and it became a power struggle between getting her son to do things and him resisting. She was also busy running art classes and doing graphic design work for various clients.

Pierce knew she needed a different model and began posting to neighborhood Facebook groups about launching a co-op out of her home. The response was positive, with many parents expressing interest in alternative learning options for their children. Today, eight-year-old Liam learns with other children in the co-op, along with his mother and their teacher, Mary-Lynn Galindo, who provide structure while emphasizing self-directed learning and ample outside time. According to Pierce:

Homeschooling, micro-learning and co-teaching as a small neighborhood-based co-op allows for us to be fully involved with our kids’ learning experience and we weave it through our neighborhood, community, borough and city.

Pierce sees hybrid homeschooling models and the larger micro-school movement as a harbinger of education innovation: “I see us moving towards education that is self-directed,” she says. “Education does not have to be seen as coming from four walls in a conventional, traditional way.” To that end, she launched a mobile arts studio and is working on purchasing an art bus, to help others to view art and education differently. Inspired by the Harlem Renaissance, and in particular the Harlem Community Arts Center that sprouted from it and nurtured African American artistic talent during the late-1930s and early 1940s, Pierce envisions her mobile studio as a modern off-shoot of the center.

It is my mission for the mobile arts studio to serve as a 21st century version of a neighborhood-based arts studio where art is mobile and meets children and adults where they are to create, express and connect,

she says. In art, education and the intersection of the two, Pierce is looking to challenge longstanding conventional settings and practices and design something new.

An Art Apprenticeship Model

Designing something new is also what drives Gabriel Valles, a professional artist and entrepreneur in Austin, Texas who runs an art apprenticeship studio. Like Pierce, Valles homeschools his children and works closely with other local homeschoolers, while building an innovative art education model. He also began his homeschooling journey by trying to replicate school-at-home and witnessing how coercion had a detrimental effect on his children’s learning and their family relationships. By granting his children more autonomy and opportunity for self-direction, their learning flourished. His older son, now 15, has a passion for stop motion animation and has a successful YouTube channel with over 50,000 subscribers and almost 32 million views.

As Valles observed how his children’s creativity and competence grew when they were allowed to drive their own learning while being supported by adults, he decided to launch an art studio, MentorWings, that would run on a self-directed apprenticeship model for aspiring young artists. “Our program is principle-based and self-directed,” says Valles.

Students come in with their particular interest, such as superheroes, anime, fantasy art or cartooning, and we meet them where they are. There is no curriculum. Instead we focus on building upon foundational art principles, such as shape, form, design and color.

Valles sees how young people quickly build their skills, and become highly competent, doing college or professional-level work as teenagers. “We need to give kids more credit than we’re giving them and acknowledge that they can be doing real-world work before or instead of college,” says Valles. He says that art school is too expensive and often doesn’t lead to the kind of career in-roads that can result in fulfilling work.

This work is increasingly in-demand, says Valles, as digital content development and marketing become ubiquitous and new mediums emerge. “I am trying to make it less expensive to attain professional-level competence and also build bridges into the industry,” says Valles. He has established an endorsement system for young artists based on their portfolios that can provide an alternative signaling mechanism for employers.

That endorsement versus a general degree really means a lot. It doesn’t guarantee a job, but it shows confidence in a particular student and becomes a much more powerful signal to the people who are hiring,

he says.

Artists have historically played a crucial role in challenging dominant systems and inspiring change. It’s not surprising that today some of them are building unconventional education models and imagining new possibilities for learning. As Valles says:

My passion is experimenting and inventing things. Art is just the medium that I do that through. Creating educational structures that are a little more just for kids is the problem I am really trying to address.

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Outschool.com Takes Education Out Of Schooling

Supporting education beyond schooling is a key feature of many educational technology platforms. While some may be integrated into conventional classrooms, complementing a traditional curriculum, emerging technology is increasingly helping to separate education from schooling and catalyze new models of K-12 learning. As its name implies, Outschool.com is focused on out-of-school learning that helps families and organizations to access high-quality content in an array of subjects. Its flexibility and variety engage learners around the world and facilitate the expansion of new learning communities outside of standard schooling.

Instructors choose to share their knowledge and passions, and they are publicly rated by participants, offering transparency and accountability.

Founded by Amir Nathoo in 2015, Outschool now offers over 10,000 live, video-enabled classes for young people ages three to 18. Connecting online in small groups with dynamic instructors, learners select content ranging from typical academic subjects to more adventurous classes such as pet trick training, forensic science, engineering with Minecraft, and wilderness survival skills.

Prices vary by topic and course length, but the introductory wilderness survival class, for example, costs $45 for a total of three, 45-minute classes. Instructors choose to join Outschool to share their knowledge and passions, and they are publicly rated by participants, offering transparency and accountability. They undergo background checks and are then free to offer whatever courses interest them while catering to learner, and parent, demand. Teachers set their own prices and Outschool takes 30 percent of the enrollment fee.

Supporting Passion-Driven Learning

Trained as an engineer, Nathoo’s inspiration for launching Outschool was tied to his own childhood experiences.

My parents were both teachers and although I had an amazing standard education in the U.K., my most impactful learning happened outside of school,

he says. In the early 1980s, Nathoo’s parents bought him a computer, a BBC Micro, and he spent hours tinkering with it. “They gave me unlimited screen time,” recalls Nathoo. “I loved playing computer games and I became inspired to try creating games myself.”

Spotting their son’s burgeoning passion for computers, Nathoo’s parents found a retired economics professor who liked computer science and offered to mentor Nathoo. “That learning experience based on my interests has turned into a career in technology,” he says.

When I think of the skills and learning that I use today, so much of that happens outside of school. Being a technologist and an entrepreneur, it’s always been my idea to apply technology to enable more of the out-of-school learning that has been so valuable to me.

Prior to starting San Francisco-based Outschool, Nathoo worked as a project lead for Square, the payment processing company. He was intrigued by how technology-driven marketplace models such as Airbnb, Lyft, and Etsy revolutionized entire industries, and he was dissatisfied that the same level of transformation was not occurring in education.

As Nathoo began to create the Outschool digital platform, he was intentionally looking for models outside of the existing education system. “The real lightbulb moment came when I learned more about homeschooling,” says Nathoo. He was introduced to this type of education from a San Francisco friend who was homeschooling her children. “There are a bunch of presumptions about homeschooling that I really didn’t see among the homeschoolers in the Bay Area,” says Nathoo.

I found that there was this group of people customizing and curating their kids’ learning and giving them a lot more freedom than they would typically have. And they were doing it socially, hiring teachers, forming groups and creating a much more dynamic style of learner-directed education. To me, this looked like the future.

Nathoo realized that this was the learner-directed education model outside of schooling that he was seeking to support and scale. The path forward became clear: create a product that served this existing audience, build a business around it and then use this business to make the ideas of learner-directed education mainstream.

I had the belief that once other parents had seen the power of this model, at first after school and on weekends, we could cause a big change in how people saw kids learning,

he says.

Global Reach, Local Impact

With a product plan, bold vision and seed capital from Y Combinator and others in 2016, Nathoo and his team built the Outschool platform and launched the first Outschool class in 2017. Since then, more than 60,000 learners worldwide have attended Outschool classes.

During his initial days incubating the Outschool idea within California homeschooling networks, Nathoo contacted Julie Schiffman who had been actively homeschooling her children for years and was very involved in the local homeschooling community. A former public school special education teacher, Schiffman left teaching because she was distraught by what she saw as a widespread practice of over-labeling and over-medicating many children with disabilities while offering limited support to children with serious emotional and behavioral disorders.

Nathoo’s vision is to make interest-based, learner-directed education a mainstream option for many more young people.

“It was insanely depressing and I had to leave the profession altogether in order to preserve my health,” says Schiffman. She began wondering how she could help to fix the problems of conventional schooling. At first, she believed that change could come from within the system, but after she started researching alternative education models, like homeschooling, she became convinced that lasting change would need to come from outside the system, by embracing and helping to expand new and better models of education.

When Nathoo called Schiffman on the phone one day in 2015 to tell her about his Outschool idea, she was spellbound. “I had to literally sit down and stable myself,” Schiffman recalls. “I fully recognized from the moment he told me what he was working on that this was the education revolution.” Schiffman’s children have used Outschool for some of their interest-based learning, including classes on building their own YouTube channels and video-editing. The relevant content and global reach mean that learners frequently take classes with peers and instructors all over the world, often retaining connections long after a class ends.

Outschool continues to expand, raising $8.5 million in Series A funding from Union Square Ventures and Reach Capital earlier this year. Nathoo expects Outschool’s digital platform to grow quickly, but he is also focused on helping to support co-learning communities, micro-schools, and other experimental education models.

Our goal is to provide a service to these types of in-person learning centers so that the kids there can get access to teachers and content to pursue their interests and to fulfill their learning goals.

Schiffman is in the process of opening one of these in-person community centers in Marin County, California, where she plans to rent out space to various instructors and vendors offering a host of different classes. She has been getting advice from Nathoo on how to make her community learning model, known as Home Base, scalable and replicable, with the aim of growing to multiple locations within the next two years. Nathoo explains how Outschool can help:

Local learning centers can focus on providing a great, local, social environment while not worrying about content, and kids can access far more teachers and content globally through this combination of online and in-person learning.

Ultimately, Nathoo’s vision is to make interest-based, learner-directed education a mainstream option for many more young people. He wants more children to have the opportunity he did to pursue passions outside of a conventional classroom that can ultimately lead to fulfilling lives and livelihoods. Now as a parent himself, Nathoo can relate even more personally to what parents want for their children’s education and well-being. He says:

When parents realize that letting kids pursue their interests is a way to get them excited about learning and is a better way to help their kids thrive in the world, that’s really powerful to see.

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Teachers Who Quit to Create Schooling Alternatives

It’s not uncommon for public school teachers to experience burnout or feel demoralized by the weight of their work. Many leave the classroom and the education profession behind to pursue other careers. In fact, U.S. Labor Department data reveal that public school educators are quitting their jobs at record-breaking rates.

But some public school teachers wonder if conventional schooling may be the root of their discontent, not education itself. They are frustrated by standardized curriculum expectations, more testing, an emphasis on classroom compliance and the antagonistic relationships between teachers and students that a rigid schooling environment can cultivate. Rather than abandoning their passion for education, some of these teachers are building alternatives to school outside of the dominant system that nurture authentic teaching and learning relationships.

Learning Is Natural, School Is Optional

One of the pioneers of schooling alternatives is Kenneth Danford, a former public middle school social studies teacher who left the classroom in 1996 to launch a completely new learning model. Along with a teacher colleague, Danford opened North Star, a self-directed learning center in western Massachusetts. They sought to create a space for young people, ages 11 and up, that prioritized learner freedom and autonomy, while rejecting the coercion and control they witnessed in the conventional classroom. This involved building the learning center as a resource for peer interaction, optional classes, workshops, and adult mentoring while providing teenagers with the opportunity to come and go whenever they chose.

Using homeschooling as the legal mechanism to provide this educational freedom and flexibility, North Star members attend when they want, frequently using the center to supplement community college classes, extracurricular activities and apprenticeships. Full-time, annual membership up to four days per week is $8,200, but no family has ever been turned away for an inability to pay these fees. Some families choose part-time enrollment options that start at $3,250 per year for one day a week at North Star.

In his new book, Learning Is Natural, School Is Optional, Danford reflects on his more than 20 years of running North Star and the hundreds of young people who have gone through his program, often gaining admission to selective colleges or pursuing work in fulfilling careers. He told me in a recent interview:

I feel like I’m making an important difference in teens’ lives, perhaps the most important difference. And all this loveliness has social implications and can be shared.

Liberated Learners

Sharing this model with others was the next step for Danford. After receiving many calls and emails from educators across the country and around the world who wanted to launch centers similar to North Star, in 2013 Danford helped to establish Liberated Learners, an organization that supports entrepreneurial educators in opening their own alternatives to school.

One of the centers that sprouted from Liberated Learners is BigFish Learning Community in Dover, New Hampshire. Founded by Diane Murphy, a public school teacher for 30 years, BigFish allows young people to be in charge of their own learning. Murphy opened the center in January 2018 with five students; today, she has over 30. Full-time tuition at the center (up to four days a week) is $9,000 per year, with part-time options also available.

An English teacher, she never expected to be the founder of a schooling alternative. “I loved my job,” she says, but she quit to create something better. “The main reason I left is because the kids began showing up more and more miserable,” Murphy continues.

In my last few years, I was meeting dozens of students who were depressed, anxious and burned out at just 13 years old. More and more rules, more tests, and more competition had sucked the fun out of learning and truly broken many kids.

Granted more freedom and less coercion, young people at BigFish thrive—and so do the teachers. “Real teachers understand that our role is to support and lead young people to discover and uncover their talents, most especially to find their passions and their voice,” says Murphy. Working outside of the conventional school system may be a way forward for more teachers who want to help young people to drive their own education, in pursuit of their own passions and potential.

Entrepreneurial Teachers

According to Kevin Currie-Knight, an education professor at East Carolina University, it’s rare for teachers to recognize that their dissatisfaction as an educator may be a schooling problem, not a personal one. Currie-Knight, who studies self-directed education and alternative learning models, says that the tendency is for teachers to internalize the problems they encounter in the classroom. If children aren’t engaged or are acting out, teachers typically assume that it must be their poor teaching and that they must not be cut out for the job, rather than seeing it as a problem with coercive schooling more broadly.

“School isn’t challengeable,” says Currie-Knight of its entrenched position in our culture.

The teachers who leave to create alternatives have a really amazing ability to separate learning from schooling. It takes a higher level of thought and an amazing ability to detach.

Currie-Knight explains that most teachers go into education either because they really like a certain subject area or they really like kids, or both. “In the conventional environment,” he says,

teachers are going to be in rooms where the vast majority of students just really don’t care about that subject at that point.

Many of these teachers conclude that it’s their teaching that is the problem, rather than the underlying dynamics of conventional schooling that compel young people to learn certain content, in certain ways and at certain times.

Teachers who leave the classroom to create schooling alternatives can be an inspiration to other teachers who may feel frustrated or powerless. Rather than blaming themselves, entrepreneurial teachers are the ones who imagine, design, and implement new models of education. As BigFish’s Murphy proposes:

We need to flip schools to become community learning centers filled with mentors, classes, programs and materials, and we need to trust young people and let them lead.

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